Bennu Restaurant and Bar, on Moray Pl, had traded under Phoenix Seven Ltd, and been owned by the Callister family of Dunedin, for the past four years.
Bennu's liquidation, separately, follows those of the Palms restaurant, in Queens Gardens, which may owe more than $200,000 to creditors, and the restaurant and bar Madly British in the Exchange, whose debts yet to be determined.
Appointed liquidator Trevor Laing said in his first report on Bennu, it was placed in liquidation on April 3 by its shareholders, having been purchased as a ''going concern'' four years ago. It ceased trading on April 1.
Mr Laing said cumulative losses had occurred because of the business trading at less than projected budgets, declining turnover prompting the need to increase borrowings and there was a ''substantial rental commitment'' on the large leased premises, which all resulted in losses.
''The liquidator has been told that [unspecified] significant amounts have been injected into the company by directors/shareholders to cover running costs,'' he said.
The company's assets were yet to be determined, which could offset some of the debts, but Mr Laing said it was ''unlikely'' any of the 38 unsecured creditors would get any money back.
Mr Laing estimated secured creditors were owed $310,000, preferential creditors, including Inland Revenue and staff pay, were owed $55,000 and the 38 unsecured creditors about $38,000.
Of the secured creditors, 11 had registrations recorded in the Personal Property and Securities Register, including one to the company's bank.
